Deeds in Lieu of Foreclosure: Advantages, Disadvantages, Avoiding Pitfalls, and Vital Provisions
Impact of Intercreditor Agreements and Mezzanine Financing, Tax and Bankruptcy Considerations, Subordinate Liens
Note: CPE credit is not offered on this program
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will address the advantages and disadvantages of deeds in lieu of foreclosure and the current spike in their use due to the present distressed market. The panel will discuss key considerations for borrowers and lenders when entering into a deed in lieu agreement and provide tips for avoiding common pitfalls.
Outline
- Advantages of a deed in lieu
- Disadvantages of a deed in lieu
- Lender concerns
- Assessing environmental issues, delinquent taxes, judgments and other liens and encumbrances
- Subordinate liens are not wiped out: non-merger and other title endorsements
- Mezzanine and junior lenders: intercreditor agreements
- Borrower concerns
- Continuing liability after the conveyance
- Liability to other lenders and creditors
- Early steps for borrower and lender
- Negotiating the key terms of the deed in lieu agreement
- Bankruptcy issues
- Tax issues and implications
Benefits
The panel will review these and other critical issues:
- What are the advantages and disadvantages of a deed in lieu from both the lender's and borrower's perspective?
- How can a lender retain the right to foreclose junior lienholders after taking a deed in lieu?
- What are the key provisions that should be included in a deed in lieu agreement?
- How do intercreditor and mezzanine financing arrangements impact a deed in lieu agreement?
- What are the tax implications of a deed in lieu?
- What are the bankruptcy concerns that a deed in lieu may trigger?
Faculty
![Bergman, Jason](/img/t/567f3e99f851b68449fef9f400fa6c2c.jpg)
Jason C. Bergman
Vice President & Senior Underwriting Counsel
Benchmark Title Agency
Mr. Bergman has nearly two decades of experience in the real estate/title insurance industry. Prior to joining... | Read More
Mr. Bergman has nearly two decades of experience in the real estate/title insurance industry. Prior to joining Benchmark, He was a Vice President and Underwriting Counsel for one of the nation’s largest title agencies. Before that, Mr. Bergman was title insurance underwriting counsel for First American Title Insurance Company in New York, and previously served as claims counsel for First American Title Insurance Company and Fidelity National Title Group. He is a three-term Chair of the New York State Land Title Association’s Law Committee, is Vice-Chair of the American Bar Association Real Estate, Condemnation, and Trust Litigation Committee’s Title Insurance subcommittee, and Co-Chair of its Mortgage and Foreclosure subcommittee.
Close![Hart, Christopher](/img/t/cc255ba1352d9caf38dbb9c6ea9a15b7.jpg)
Christopher J. Hart
Senior Counsel
Locke Lord
Mr. Hart has more than 30 years of experience representing banks, other lenders and borrowers in a wide range of... | Read More
Mr. Hart has more than 30 years of experience representing banks, other lenders and borrowers in a wide range of asset-based and real estate secured loans. He represents construction, bridge and permanent lenders, life insurance companies, reinsurance companies, CMBS conduit lenders, local and institutional developers, owners and investors in connection with all aspects of commercial finance and workouts. Mr. Hart has substantial experience with balance-sheet lenders and CMBS/conduit lenders on all commercial property asset types, including office, retail, multi-family and resort.
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